The first quarter of 2022 started out pretty poorly for most investors. The S&P 500 stock index declined 11% during the first 16 trading days of the year but recovered somewhat to finish down 5%. Of course, if you've been an investor with us for some time you...
How to Build and Protect Your Portfolio in the Coming Decade So the future forecast for stock and bond returns looks dismal, doesn't it? To remind you of my last missive, I've included the 7-year forecast for stocks and bonds below. Today, we're going to get specific...
The above chart doesn't look good, does it? In fact, it looks like something I wouldn't want any part of. Let me explain... The graph is titled "7-year Asset Class Real Return Forecasts." The left side is the forecasted return on stocks for the next 7 years and the...
Mastery. When you hear the word, you know you’ve run across something or someone that’s uncommonly good. Maybe you know a master builder or master craftsman. Or you enjoy watching flicks about Kung Fu masters who devote their lives to teaching others. I've always been...
What investors should watch in 2022... Welcome to 2022! I hope it will be a healthy, happy year for everyone reading this. While I'm stopping short of making formal "predictions," here are a few things I wouldn't be surprised to see happen this year -- and that could...
Many investment firms recommend a periodic rebalancing of one's portfolio. Let’s look at what rebalancing means and why you’ll not see me taking their approach. What does it mean to rebalance a portfolio? Rebalancing a portfolio is an asset allocation strategy. Assets...
What is the future of Chinese stocks in U.S. Exchanges? It is no secret that China's overall strategy is to become the main player in world economics. And, we in the U.S. shouldn't be surprised at this ambition. China is the world's most populous country. The stock...
If you've been investing for any length of time, you've probably owned some mutual funds. And many wonder which is better -- mutual funds vs individual stocks. While first founded in 1924, the mass adoption of mutual funds in the 1980s was game-changing for individual...
So, what is a Bubble? A bubble is a rapid, unjustified acceleration in the price of something. The price uptick is typically driven by excitement or implausible assumptions about the asset's future. When investors pay prices exceeding an asset's true intrinsic value,...
When it comes to investing, there are many ways to skin a cat, like my friend likes to say. Investing is a discipline that has many different styles and variations. Whatever the style or variation, whether it's value investing or futures trading, there is a process....